Lancashire Holdings Reports Strong Profits and Plans for U.S. Launch

Lancashire Holdings, a Bermuda-based insurer, has announced its intention to enter the U.S. market as it reports an impressive rise in pretax profit for the first half of 2023. The company achieved a pretax profit of $167.2 million for the six months ending June 30, up from a restated figure of $34.1 million in the previous year.

Gross premiums written by the London-listed group saw a notable 26% increase year-on-year, reaching $1.18 billion. The company's insurance revenue also experienced growth, rising from $579.8 million to $720.9 million. Additionally, the insurance service result rose to $188.8 million, compared to $141.5 million for the same period last year. Lancashire Holdings' net investment return significantly improved to $63.2 million, rebounding from a loss of $85.8 million.

The company proudly declared an interim dividend of 5 cents per share, maintaining the same level from the previous year. Lancashire Holdings plans to establish a presence in the U.S. through a delegated underwriting arrangement with its U.K.-based company platform. This new operation, named Lancashire Insurance U.S., is expected to commence underwriting activities in early 2024. Chief Executive Alex Maloney stated that Lancashire Insurance U.S. will complement their existing capabilities and enable them to target business opportunities that align with their appetite but were previously inaccessible.